Comcast 2011 Annual Report Download - page 64

Equity in Net Income (Losses) of Investees, Net
The decrease in equity in net losses of investees, net for 2011 was primarily due to the acquisition of NBCUni-
versal and its equity method investments, including A&E Television Networks and The Weather Channel,
offset by losses related to our investment in Clearwire LLC.
Other Income (Expense), Net
In connection with the NBCUniversal transaction, we agreed to share with GE certain financing and other
costs associated with debt facilities that were entered into in December 2009 and with the issuance of
NBCUniversal’s senior notes in 2010. Other income (expense) for 2011 and 2010 includes $16 million and
$129 million, respectively, of expenses for our share of these costs. Other income (expense) for 2011 also
includes $57 million of expenses related to contractual obligations involving perpetual financial interests held
by third parties in certain of our businesses. The obligations were recorded at fair value in connection with the
NBCUniversal and Universal Orlando transactions, with subsequent changes in fair value recorded in other
income (expense). Other income (expense) for 2010 also includes income of $141 million related to the sale
of one of our equity method investments and income of $108 million related to recoveries in connection with
the resolution of a contingency of an acquired company.
Consolidated Income Tax Expense
Our effective income tax rate for 2011, 2010 and 2009 was 37.2%, 39.9% and 28.9%, respectively. Income
tax expense reflects an effective income tax rate that differs from the federal statutory rate primarily due to
state income taxes, interest on uncertain tax positions, and, in 2011 due to the partnership structure of
NBCUniversal Holdings and foreign income taxes. Our 2011 income tax expense was increased by $137 mil-
lion due to certain changes in state tax laws. Our 2009 income tax expense was reduced by $566 million
primarily due to the recognition of tax benefits associated with settlements and adjustments of uncertain tax
positions and related interest and certain subsidiary reorganizations that impacted deferred state income
taxes. Our income tax expense may in the future continue to be impacted by adjustments to uncertain tax
positions and related interest and changes in state tax laws. We expect our 2012 annual effective tax rate to
be in the range of 35% to 40%.
Consolidated Net (Income) Loss Attributable to Noncontrolling Interests
The increase in net (income) loss attributable to noncontrolling interests for 2011 was primarily due to the
NBCUniversal transaction. GE’s interest in NBCUniversal Holdings is recorded as a redeemable non-
controlling interest in our consolidated financial statements due to the redemption provisions outlined in Note
4 to our consolidated financial statements. Net (income) loss attributable to noncontrolling interests includes
GE’s allocated share of the earnings of NBCUniversal Holdings and NBCUniversal.
Liquidity and Capital Resources
Our businesses generate significant cash flows from operating activities. We believe that we will be able to
continue to meet our current and long-term liquidity and capital requirements, including fixed charges, as well
as potential future redemptions of GE’s noncontrolling equity interest in NBCUniversal, through our cash
flows from operating activities, existing cash, cash equivalents and investments, available borrowings under
our existing credit facilities, and our ability to obtain future external financing.
We anticipate that we will continue to use a substantial portion of our cash flows to meet our debt repayment
obligations, to fund our capital expenditures, to invest in business opportunities, and to return capital to
shareholders. The cash flows generated from our Cable Communications segment and other businesses are
used to invest in their core businesses and return capital to shareholders. The cash flows generated from
Comcast 2011 Annual Report on Form 10-K 62